Reply
Member
Posts: 15
Registered: ‎01-02-2013
0

Credit Repair and applying for secured credit cards.

Hello all,

 

I have been doing by best the past 6 months to have some old credit cards information updated but to no avail. It appears that since the original credit cards companies sold off/charged off the debt it can not be updated with a PIF status, even though I did pay off settlements amounts to the companies that they sold the debt to. Is there anythingI can do to improve this or get them to update my charged off status? My current FICO is 582.

 

Also I have the funds to open opened some secured credit cards and am planning to open three if possible and then begin to may minimum payments. I would like to avoid being charged any large fees, such as a charge to open, annual and monthly fess I have heard some of the credit card companies can charge. I do find paying a reasonable fee of say 50 or under. Please help if you can as it can be a bit overwhelming trying to make the correct choices.

 

sincerely,

Pete

Senior Contributor
Posts: 3,065
Registered: ‎11-02-2009
0

Re: Credit Repair and applying for secured credit cards.

What do you mean about updating your charged off status?  Paying the charge off will not change it from being charged off.  The fact that it was charged off will contiue to report.  Is it also reporting a balance?  If so, there may be something you can do about that, but I am not sure.  You should post this in the rebuilding forum and you'll get more detailed advice.

 

Bank of America has a good secured credit product.  I believe I've read that NFCU does as well, assuming you're eligible.


Starting Score: ~500 (12/01/2008)
Current Score: EQ 681 (04/05/13); TU 98 728 (01/06/12), TU 08? 760 (provided by Barclay 1/2/14), TU 04 728 (lender pull 01/12/12); EX 742 (lender pull 01/12/12)
Goal Score: 720


Take the FICO Fitness Challenge
Member
Posts: 15
Registered: ‎01-02-2013
0

Re: Credit Repair and applying for secured credit cards.

Thanks my friend, this is my first time using a site like this and hopefully it will be my last. I will do as you suggested and repost and look into the other. NFCU.

Moderator Emeritus
Posts: 7,225
Registered: ‎09-16-2011
0

Re: Credit Repair and applying for secured credit cards.

Bank of America; wells Fargo; digital credit union; and capital one My advice would be to do two credit cards and a secured loan to rebuild with

Starting Score: 08/29/2011 TU 671 EQ 674
Current Score: TU 754 EQ 694 EX 697
Wallet: NFCU Visa Sig 25k, Amex Lowes 22k, NavCheck 15k, Amex PRG, Amex Zync, Discover It 13.5k, Amazon Visa 5k
Platinum Spade Garden Club Member: App Free since 1/1/13. No more apps til who knows when?
MyFICO Fitness Goal: 800s Club!



Take the myFICO Fitness Challenge
Frequent Contributor
Posts: 421
Registered: ‎02-06-2008
0

Re: Credit Repair and applying for secured credit cards.

I think you would be approved for a cap1 secured or wells fargo secured. At the time i was rebuilding i was never approved for bank of america. 

Member
Posts: 15
Registered: ‎01-02-2013
0

Re: Credit Repair and applying for secured credit cards.

Thanks webhopper, i will take a look at your suggesstions.

Member
Posts: 15
Registered: ‎01-02-2013
0

Re: Credit Repair and applying for secured credit cards.

Hi and thank you for shaing your info and suggesstions, I'll check them out.

Senior Contributor
Posts: 3,197
Registered: ‎01-24-2010
0

Re: Credit Repair and applying for secured credit cards.


newpete wrote:

Hello all,

 

....
Also I have the funds to open opened some secured credit cards and am planning to open three if possible and then begin to may minimum payments. I would like to avoid being charged any large fees, such as a charge to open, annual and monthly fess I have heard some of the credit card companies can charge. I do find paying a reasonable fee of say 50 or under. Please help if you can as it can be a bit overwhelming trying to make the correct choices.

 

sincerely,

Pete


I suggest 2 secured cards with bigger deposits is better than 3.   Capital One, USBank, BofA, CITI and most CU have secured cards with decent terms.

 

What do you mean pay the minimum payments?   You should be paying in full (PIF) every month on your secured cards, with rare exception.    If you plan to charge these up and pay interest, you are not ready to open CC.   A secured loan would make more sense in that case.

 

Member
Posts: 15
Registered: ‎01-02-2013
0

Re: Credit Repair and applying for secured credit cards.

Hey,

 

I was told back in 2004 by a mortgage broker tha it I wanted to improve my credit I should get three cards Max them out or at least get some type of balance and then just pay the minimum bal, and that within a year my credit should improve. You are saying that I should do the opposite? Please advise if you can before I make a terrible mistake.

Senior Contributor
Posts: 3,065
Registered: ‎11-02-2009
0

Re: Credit Repair and applying for secured credit cards.


newpete wrote:

Hey,

 

I was told back in 2004 by a mortgage broker tha it I wanted to improve my credit I should get three cards Max them out or at least get some type of balance and then just pay the minimum bal, and that within a year my credit should improve. You are saying that I should do the opposite? Please advise if you can before I make a terrible mistake.


That is horrible advice.  You'd think otherwise, but mortgage brokers often have no idea how FICO scoring works.

 

Best score results are generally obtained by having one card report a balance that is 9% or less of that card's CL, and all other cards report $0.


Starting Score: ~500 (12/01/2008)
Current Score: EQ 681 (04/05/13); TU 98 728 (01/06/12), TU 08? 760 (provided by Barclay 1/2/14), TU 04 728 (lender pull 01/12/12); EX 742 (lender pull 01/12/12)
Goal Score: 720


Take the FICO Fitness Challenge
Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.